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Toy Story Report

1312 words - 5 pages

“To infinity and beyond!!!”

External Analysis
Toy Story is a movie series that targets young children, specifically those under the age of 6. This places an emphasis on targeting parents who are in household life cycles that involve young children. These HLC’s that incorporate children are Full Nest I, Single Parent I, and Delayed Full Nest I. Since the birthday requires a bit of discretionary income, the Toy Story Birthday Party will concentrate on the HLC’s that involve couples since likely they have more combined income to support the same number of children.
Full Nest I
The Full Nest I Household Life Cycle is the HLC that involves young married couples with children under the age of 6. This HLC incorporates 6% of all households. Since the young couple is recently married they are likely are their first child. This first child changes couples purchasing behaviors in many ways. They are likely to spend the majority of their discretionary income on purchases for their young child. With the addition of a new child, total income dips approximately 9.4%. This is largely due to the fact that many couples elect for one parent to stay at home to avoid the high cost of childcare.
There is also a decrease in purchases not related to children, such as alcoholic beverages, which drops an average of 25%. Apparel purchases for the couple also lowers 8.3%. This is in complete contrast to purchases directly tied to their new family member. Apparel purchases for children increases by 215.7%, food prepared at home increases 24.3%, and finally health care purchases increase 16.1%. The person with the strongest purchase power in this life cycle is the mother. Mothers across this HLC have a combine $1.7 trillion in spending power.

Delayed Full Nest I
Delayed Full Nest is the Household Life Cycle which contains households that feature a married couple, with young children. The difference between Delayed Full Nest I and Full Nest I is the age of the parents. The age of the parents in Delayed Full nest I come from the baby boom generation and generation X, ages 35-64. Between Delayed Full Nest I and Delayed Full Nest II they account for roughly 15% of all households. The only difference between those two Household Life Cycles is the age of the children. The children in Delayed Full Nest I are younger children.
The main difference between Delayed Full Nest I and Full Nest I, in terms of purchase behavior, is the general level of income. Since Delayed Full Nest I feature older parents, they generally are more established financially and have a higher average income. In addition, because they are older they have spent more time acquiring possessions so less money is spent on household items like washers, dryers, and furniture. This extra discretionary income leaves more money to be spent on their children. Parents in Delayed Full Nest I only want the best for their children and they are willing to spend extra on items for their children...

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